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Talking Points:
- NZD/USD Technical Strategy:Short at 0.7909
- Support: 0.7802, 0.7682, 0.7525
- Resistance:0.7937, 0.8034, 0.8109
The New Zealand Dollar looks to have resumed the down trend against its US namesake after prices violated the series of higher highs and higher lows set from early November. A daily close below the 14.6% Fibonacci expansion at 0.7802 exposes the 0.7682-96 area marked by the July 2013 bottom and the 23.6% level. Alternatively, a turn above the 23.6% Fib retracement at 0.7937 opens the door for a test of the October 21 high at 0.8034.
We sold NZDUSD at 0.7909 and subsequently booked profits on half of the position. The rest will remain open to capture any further downside with a stop-loss adjusted to the breakeven level (0.7909).
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
original source
